This post is not about our current President and leader but any President Republican or Democrat that is a bad leader. It is a post in general about what makes a bad President? What are the five guaranteed warning signs you have a bad president and leader?
- Increase taxes – “No nation was every taxed into prosperity” – Ronald Reagan. Taxes are simply a statement that bureaucrats know how to spend and invest your hard-earned money better than you. It is an inefficient transfer of money. The result is you wind up working for your neighbor’s wife, who wants to remodel her bathroom with government housing credits or none market loans (your money).
- Increase debt – Government deficits and debts are nothing more than a heavy tax and burden on your children. But it actually something more. The US debt affects you today because it crowds out of the private initiative in business, therefore, increases unemployment and decreases competitiveness. Increased government spending is moving the US towards a collapse because fixed mandatory spending will exceed anything possible to fix. I am not a doomsayer, but this is collapse is as shown under various budget projections by the congressional budget office.
- Increase government waste – Government wastes more than private ownership. I know you are saying, this is not true, but the presidential stimulus plan includes such things as golf carts, massages, studies college girls causal encounter behavior while partying.
- Increase unemployment – Distortions in the market always lead to prolonged unemployment. If you prop up the economy with bailouts you do not let the markets work. You spend the money of hardworking people to prolong and exacerbate unemployment by allowing inefficient businesses to exist and crowd out the opportunity for new innovative people to create jobs. If you want unemployment to go down, let the markets work.
- Increase in blame – When a president and leader of a country says, the last president or it is some greedy man or bank is the cause, this is blame. The real problem is not a person or scapegoat but actually, the government trying to micromanage the economy instead of letting the market punish and reward the bad and the good. If a bank is bad, let it fall, do not bail it out. On a large macro-scale economic problems are caused because of government mismanagement. Whether fiscal policy mismanagement by a policy of tax and spend or monetary central bank policies by allowing easy credit to people and companies that were risky. In the words of Ronald Reagan “Government is the problem”.
Markets work because they are run by normal people like you and me. That is the aggregate action of our behavior is the market. This is a democracy and a free market. There are wisdom and safety in the collective minds of individuals acting freely, that is greater than the wisdom of a leader trying to manage the economy from above. Economies fail because of government leadership under a bad President.
A bad President and government micromanages the economy
This current economic crisis was caused by easy credit from the government central bank and government agencies like Fannie Mae and Freddie Mac and fiscal policies (and transfer of toxic debt from private to public hands) deepened and prolonged it. The Government should not be in the business of microeconomic management. Rather the government should protect the liberty of the people of a country against foreign and domestic threats to life, liberty and the pursuit of happiness.
If you like this post about the five warning signs of a bad President, please spread it around via Facebook, Twitter, Stumble, etc. as I think it is something worthy for others to read and be aware of concerning our democracy. Thank you.
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